2nd Circ. Sends $8.5B Countrywide Deal To NY Court

By Carolina Bolado

Law360, New York (February 27, 2012, 6:48 PM ET) -- The Second Circuit on Monday remanded a dispute over an $8.5 billion settlement with holders of Countrywide Financial Corp. bonds to New York state court, saying the dispute falls within the securities exception under the Class Action Fairness Act.

The appeals court reversed a decision by the Southern District of New York accepting the suit. It ordered the case to be remanded to New York state court, where Bank of New York Mellon Corp., the indenture trustee for the settlement, had filed its petition for settlement...